E3 Lithium begins drilling third lithium well

Executive Summary

• E3 Lithium Ltd. has commenced drilling its third lithium development well (Lithium #3) into the Leduc formation in central Alberta, marking the start of Phase 2 of its demonstration facility program.
• This phase builds upon Phase 1, which successfully validated the design of the company's direct lithium extraction (DLE) equipment and produced battery-grade lithium carbonate in early October 2025.
• The primary objectives of this drilling phase are to validate subsurface geology, collect reservoir data to inform commercial facility design, provide brine for continued DLE operations, and support engineering and permitting for the upcoming commercial facility.

Key Details

• Well Status: Commenced drilling of Lithium #3 well; drilling and testing activities expected to continue into November.
• Geological Target: Drilling into the Leduc formation.
• Phase Context: This is the third lithium well drilled by E3 Lithium. It follows Phase 1, which validated DLE equipment design and produced battery-grade lithium carbonate in early October 2025.
• Phase 2 Objectives:
  • Validate subsurface geology through core sample analysis and well-logging data.
  • Collect reservoir data to inform commercial wellfield and facility design.
  • Provide brine for continued operation of DLE and processing equipment commissioned in Phase 1.
  • Support engineering and permitting work for the commercial facility.
• Resource Estimates (from "About" section):
  • Alberta: 21.2 million tonnes LCE measured and indicated; 300,000 tonnes LCE inferred.
  • Saskatchewan: 2.5 million tonnes LCE inferred.
• Financial Metrics (from Clearwater prefeasibility study):
  • Proven and probable mineral reserve: 1.13-million-tonne LCE.
  • Pretax NPV (8% discount): $5.2 billion USD (29.2% IRR).
  • After-tax NPV (8% discount): $3.7 billion USD (24.6% IRR).

Notable Quotes

• "This well kicks off the second phase our demonstration program, another important step forward as we advance toward commercial operations," said Chris Doornbos, president and chief executive officer of E3 Lithium. "Our drilling activities provide important data to inform our continued project design and enhances our understanding of reservoir performance capabilities."